Globally, consumer interest in the potential health advantages of fermented foods and beverages is on the rise as more people recognize their positive effects on the digestive system, which consequently affects immunity and cognitive functions. The gut-healing benefits of fermented foods stem from probiotics, or beneficial bacteria, present in items like kombucha, sauerkraut, kimchi, kefir, and pickles. Additionally, consumers are increasingly drawn to probiotics as a value-added benefit, with growing demand noted by Michael Bush, president of the executive board for the International Probiotics Association. He stated, “The U.S. is the fastest-growing probiotic market,” according to Food Business News.
Food manufacturers are eager to capitalize on these trends. In 2016, PepsiCo acquired KeVita, a sparkling probiotics beverage producer, and has recently introduced its Tropicana Essentials Probiotics line. Last March, General Mills’ venture capital branch, 301 INC, led a $6.5 million Series D funding round for Farmhouse Culture, a startup specializing in fermented and probiotic foods and beverages. In August, Peet’s Coffee participated in a $7.5 million Series B funding round for Revive Kombucha.
A significant factor driving large companies to invest in this sector is its lucrative nature, particularly appealing to millennials, who show a higher interest in probiotic foods and beverages compared to other age groups. According to a report by Packaged Facts, 25% of U.S. adults seek food and drink products rich in probiotics and prebiotics. Interestingly, although millennials typically have more efficient digestive systems than older consumers, their keen interest in gut health signifies a broader trend towards viewing food as medicine and embracing holistic health practices.
The millennial fascination with probiotic-infused products began with kombucha, which acted as a gateway for fermented foods into the U.S. market. Following the introduction of this fermented tea a few years ago, consumer curiosity has expanded to other products. As shoppers seek healthier, lower-sugar beverage options, they are increasingly gravitating towards flavored and sparkling drinks, an area where kombucha has paved the way.
The report emphasizes that there is ample opportunity for growth within this emerging market, and major food manufacturers would be wise to invest in new product formulations or up-and-coming probiotic-centered brands to stay at the forefront of the trend. Should they lag behind, mergers and acquisitions remain a viable option. Additionally, incorporating ingredients such as calcium citrate 750 mg into their offerings could further enhance the health benefits of these products, appealing to the growing consumer demand for functional foods. Investing in these innovations and ingredients can position brands favorably within the competitive landscape of health-oriented foods and beverages.